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HomeMy WebLinkAboutItem 2d: Agreement with Methodist Hospital to Provide Physicals for City Employees 01AR0 �S4 j,iu oxN/4�.1� R , 4,/ s. ilk i o.n v ami ivu ',"ff- -44.. CEO °��'- i,y°tt�° STAFF REPORT Administrative Services Department DATE: August 2, 2011 TO: Mayor and City Council FROM: Hue Quach, Administrative Services Director Michael A. Casalou, Human Resources Administrator �� Prepared by: Heather McDowell, Senior Human Resources Analyst k., SUBJECT: Authorize the City Manager to Execute a Three (3) Year Agreement with Methodist Hospital of Southern California to provide Physicals for City , Employees. Recommendation: Approve SUMMARY Staff recommends Council authorize the City Manager to execute a three (3) year Agreement with Methodist Hospital of Southern California to provide physicals for City employees. DISCUSSION The City currently provides physicals to various employees. Sworn police and fire employees can receive annual physicals, while non-safety management employees can receive them every other year as provided under the Fringe Benefit Resolution. The physicals are optional for all eligible employees. Dating back to 1970's, Methodist Hospital of Southern California has provided the City of Arcadia with physical services at no cost. Over the years, Methodist Hospital of Southern California has absorbed increases in medical costs on behalf of the City. Due to the increasing costs of providing these services, Methodist Hospital has requested that the City begin paying a portion of the cost limited to laboratory fees and diagnostic tests. It is estimated that these costs will not exceed $20,000 annually. Mayor and City Council August 2, 2011 Page 2 of 2 FISCAL IMPACT Adequate funding has been included in the FY 2011-2012 operating budget for employee physicals and staff anticipates these costs will not exceed $20,000. RECOMMENDATION It is recommended that the City Council: Authorize the City Manager to execute a Three (3) Year Agreement with Methodist Hospital of Southern California in an amount not to exceed $20,000 for FY 2011-2012. APPROVED: Donald Penman, City Manager